+28.10(+0.46%)

+0.50(+0.88%)

-3.00(-0.23%)

-27.17(-0.38%)

Gold Price Forecast – Gold trying to find a bottom

The Gold markets have drifted lower during the trading session on Wednesday, testing the $1222 level. We bounced from there to reach towards the $1225 level after that, which is an area that has been supported and resistance occasionally on longer-term charts. The $1200 level underneath is significant support as well, and quite frankly I think even more support than this region. Because of this, I think that longer-term traders are waiting to see what this market does a $1200, as it offers the potential for significant value.

If we can break above the $1230 level, then the market probably goes to the $1234 level. The $1250 level above is even more resistive and makes sense for a target. Overall though, I think what you need to pay attention to is that the US dollar, as it has a major influence on what happens to gold over the next several days. I think the US dollar has gotten a bit ahead of itself, but the EUR/USD pair is probably the easiest way to pay attention to how that currency is going. The 1.15 level in the EUR/USD pair could coincide quite nicely with the $1200 level, and at that point I think both of those markets could turn around. Expect a lot of volatility, but I still think that gold probably has a little bit more downside before we get the longer-term turnaround. If we break down below the $1200 level, then I think gold could drop down to the $1000 level.